New rice technology and comparative advantage in rice production in the Philippines

The aim of this stimy is to assess the comparative advantage iii rice produ ction in the Philippines for the past three decades since 1966. We have fou nd that the country gained sharp improvement in comparative advantage in ri ce production in 1979, when yield rose remarkably due to the diffusion of p est- and disease-resistant modern rice. Beginning in 1986 however, the coun try appears to have slowly lost its comparative advantage due to the declin e in rice prices, stagnation in rice yield and rising cost of domestic fact ors. By 1990, the country completely lost its comparative advantage in rice production.